– Greenback recovers from lows –
The prospect of higher rates also helped lift the greenback off a 15-month low, with the US currency recovering Friday against the yen and the euro, and holding the bulk of the gains in forex trade Monday.
Ongoing political turmoil in Washington has cast doubt on President Donald Trump’s ability to push through an agenda aimed at boosting growth and dented the dollar against its major peers.
The outlook for the dollar is still uncertain, market watchers warned.
“Given typical August liquidity conditions, we could be in for a bumpy week as the market irons out if we’re in a short term USD correction or a trend reversal,” said Stephen Innes, who heads Asia-Pacific trade at forex firm OANDA.
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